As long as firms currently in the market are earning profits, firms will enter the market with products that are very close substitutes until existing firms are earning an economic profit of zero.
If a company in an oligopolistic competitive industry suffers an economic loss, the industry will see the company withdraw until long-term economic profits are driven to zero.
The existence of economic benefits attracts entry, economic loss leads to withdrawal, and long-term equilibrium enterprises in a perfectly competitive industry do not achieve economic benefits. The long-term supply curve for industries whose input prices do not change due to expansion (industries with constant costs) is horizontal.
Companies enter the industry when they expect financial benefits. These short-term benefits are sufficient to facilitate entry. Zero economic benefit means the normal long-term benefit of the factor of production, including the employer's labor and capital.
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